Press Release Article

PA Commissioners approve carrier's $175 million initiativefor an 11-gate extension and lease amendments as part of overall $1.2 billion project

The Port Authority's Board of Commissioners has authorized $175 million for the second phase of Delta Air Lines' project to expand Terminal 4 at John F. Kennedy International Airport. The Board also amended the airline's existing airport lease to relocate a portion of the carrier's current operations at Terminal 2 to the expanded facility.

The Board's announcement today is a follow-up to the board's August 2010 Phase I approval of Delta's overall $1.2 billion to expand Terminal 4 and cease operations at the decades-old Terminal 3, which will be removed to accommodate aircraft parking.

Under the supplemented tenant agreement, Delta would spend roughly $175 million to construct an 11-gate extension at the end of Terminal 4's Concourse B, relocating the airline's domestic regional jet operations from Terminal 2. Delta would increase its leasehold at Terminal 4 by approximately 2.4 acres and have preferred use of the new gates there.

Delta also would develop a bus operation and a new bus station at Terminal 4 for connecting passengers between Terminal 2 and Terminal 4, under the project authorization. In addition to the $175 million, Delta has committed an additional $5 million for information technology improvements.

Delta's second phase project is anticipated to create 770 direct and indirect jobs, with $52 million in wages and $259 million in overall economic activity.

"Delta's expansion of JFK's Terminal 4 underscores the Port Authority's commitment to partnering with the private sector to modernize our aging assets and continue to stimulate economic growth in the region,' said Port Authority Chairman David Samson. "This $1.2 billion project will provide a modern, first-class terminal for passengers at JFK, as well as create good-paying jobs and hundreds of millions of dollars in economic activity."

"Delta is one of the major aviation players at our New York City airports and their continued investment at JFK speaks volumes about this airport's future,' said Port Authority Vice Chairman Scott Rechler. "We applaud this commitment and look forward to watching Delta's continued growth at JFK and its positive impact on the region's economy."

"Delta's additional investment in the Terminal 4 expansion project at JFK is an appreciated and welcome continuation of ongoing efforts to modernize this vital gateway to the region,' said Pat Foye, the Port Authority's executive director. "Expanding Terminal 4 will create needed short- and long-term jobs, while further enhancing passengers' travels in a state-of-the art terminal while en route to their destinations."

"Growth at one of our major airports helps our entire airport network meet the future needs of the New Jersey-New York region,' said Port Authority Deputy Executive Director Bill Baroni. "Delta's growth reflects the continued importance of this region's aviation system and bodes well for future expansion at not only JFK, but Newark Liberty and LaGuardia airports as well.'

Expansion of Terminal 4 fits into the Port Authority's Central Terminal Area Redevelopment Program, which has sought to modernize passenger terminal facilities at JFK over the past 15 years.

Completion of Phase I of the Terminal 4 expansion is expected this May, allowing Delta to move its Terminal 3 operations to the expanded Terminal 4. Phase II of the project would commence at that time.

CONTACT: Port Authority of New York and New Jersey

212-435-7777

Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency's network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where construction crews are building the iconic One World Trade Center, which is now the tallest skyscraper in New York. The Port Authority receives no tax revenue from either the state of New York or New Jersey or from the City of New York. The agency relies on revenues generated by facility users, tolls, fees and rents as well as loans, bond financing, and federal grants to fund its operations. For more information, please visit http://www.panynj.gov.